Nearly one in four small employers are no longer offering life insurance — often considered the bedrock of the benefits package, along with major medical — to their employees, according to new LIMRA research.
The drop in coverage is particularly pronounced for employers with 10 to 19 employees (37%) and employers with 20 to 99 employees (30%). Nearly one in five (19%) employers with 100 to 999 employees no longer offer life insurance as well, according to LIMRA.
There are a number of reasons for the decline, experts say, including lack of product awareness and shifting priorities among younger employees.
“The old adage goes: Life insurance has to be sold, it’s not bought,” says Tom Wamberg, CEO of Wamberg Genomic Advisors and former president of the Association for Advanced Life Underwriting. “As the world [and benefits enrollment] becomes digital, the internet can’t reach out.” (read more)